Anthem Citizen Real Estate Development Trust Files Preliminary Prospectus for Initial Public Offering of Units

/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

/EIN News/ -- VANCOUVER, British Columbia, Sept. 10, 2024 (GLOBE NEWSWIRE) --  Anthem Citizen Real Estate Development Trust (the “REDT”) announced today that it has filed, and obtained a receipt for, a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada for a proposed initial public offering of its trust units (the “Offering”).

The preliminary prospectus qualifies the distribution of a minimum of C$65 million and a maximum of C$82 million of Class A Units and/or Class F Units of the REDT at a price of C$10.00 per Class A Unit and Class F Unit.

The REDT is a newly created, unincorporated investment trust and was established for the primary purpose of indirectly owning an interest in a mixed-used, transit-oriented development project (the “Project”) located in Burnaby, British Columbia. The Project is comprised of 372 condominium units, 200 market rental units, 73 non-market, affordable rental units, 176 hotel suites and 4,881 square feet of retail space.

The REDT will aim to develop the assets, commence lease-up and operate the Project, and subsequently achieve a liquidity event.

The Project is currently beneficially owned by a subsidiary of Anthem Developments (Canada) Ltd. and its non-managing, co-investment partner.

The Project has the necessary rezoning entitlements in place, with construction expected to commence shortly following closing of the Offering. Total budgeted costs for the Project are approximately C$621.7 million.

The REDT will be managed by Anthem Properties Group Ltd. and administered by a board of trustees, a majority of whom are independent of Anthem.

CIBC World Markets Inc. (the “Agent”) is the sole agent for the Offering.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of the REDT in the United States, nor shall there be any sale of the securities of the REDT in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), and may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.

A preliminary prospectus containing important information relating to these securities has been filed with securities regulatory authorities in each of the provinces of Canada. The preliminary prospectus is still subject to completion or amendment. A copy of the preliminary prospectus may be obtained from the Agent and is available on SEDAR+ at www.sedarplus.com. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

Anthem Citizen Real Estate Development Trust

Anthem Citizen Real Estate Development Trust was formed for the primary purpose of indirectly owning an interest in the development of a mixed-used, transit-oriented development project in Burnaby, British Columbia expected to develop and operate a building containing 372 condominium units, 200 market rental units, 73 non-market, affordable rental units, 176 hotel suites and 4,881 square feet of retail space.

Forward-Looking Statements

This news release contains statements that include forward-looking information within the meaning of Canadian securities laws. These forward-looking statements reflect the current expectations of the REDT regarding future events, including statements concerning the use of proceeds of the Offering, expectations with respect to the development of the Project, the timing of construction and completion, expected construction plans, expected square footage and the achievement of a liquidity event by the REDT. In some cases, forward-looking statements can be identified by terms such as “may”, “might”, “will”, “could”, “should”, “would”, “occur”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “seek”, “aim”, “estimate”, “target”, “project”, “predict”, “forecast”, “potential”, “continue”, “likely”, “schedule”, or the negative thereof or other similar expressions concerning matters that are not historical facts.

Material factors and assumptions used by management of the REDT to develop the forward-looking information include, but are not limited to, the REDT’s current expectations about: real property ownership and revenues; construction and development risk; obtaining necessary building permits for the Project; the realization of property value appreciation and timing thereof; the inventory of mixed-use properties; competition from developers of mixed-use properties; the Burnaby, British Columbia real estate market; government legal and regulatory changes; property encumbrances relating to the Project; significant fixed expenditures and fees in connection with the maintenance, operation and administration of the Project; closing and other transaction costs in connection with the acquisition and disposition of the Project; the availability of financing and current interest rates; revenue shortfalls; assumptions about rental growth rates, hotel occupancy and average daily rates in the Canadian mixed-use real estate market; demographic trends; fluctuations in interest rates; litigation risks; the relative illiquidity of real property investments; the Canadian economic environment; the geographic concentration of the REDT’s business; natural disasters and severe weather; demand levels for mixed-use properties in the metro Vancouver area and local economic conditions; negative geopolitical events; public health crises; the capital structure of the REDT; distributions; capital depletion; potential conflicts of interest; reliance on the good faith and ability of the Project’s project manager to manage and operate the Project; reliance on property management companies; the limited operating history of the REDT; the limited experience of management of the REDT with respect to managing a reporting issuer; the limited liquidity of the Class A Units and Class F Units; and tax laws. While management of the REDT considers these assumptions to be reasonable based on currently available information, they may prove to be incorrect.

Although management believes the expectations reflected in such forward-looking statements are reasonable and represent the REDT’s internal projections, expectations and beliefs at this time, such statements involve known and unknown risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities may not be achieved. A variety of factors, many of which are beyond the REDT’s control, could cause actual results in future periods to differ materially from current expectations of estimated or anticipated events or results expressed or implied by such forward-looking statements. Such factors include the risks identified in the preliminary prospectus, including under the heading “Risk Factors” therein. Readers are cautioned against placing undue reliance on forward-looking statements. Except as required by applicable Canadian securities laws, the REDT undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Additional information regarding Anthem Citizen Real Estate Development Trust is available at www.citizenbyanthemdevtrust.com and on www.sedarplus.com.

About Anthem Properties

Anthem is a real estate development, investment and management company that strives, solves and evolves to create better spaces and stronger communities, with more than 385 residential, commercial, and retail projects. Founded in 1991, Anthem is a team of 800, with a diverse portfolio consisting of 41,700 homes, 11.5 million square feet of retail, industrial and office space and has developed more than 60 communities across 9,800 acres of land across in Alberta, British Columbia, Ontario and California. We are Growing Places.

Contact:
Elisha McCallum
Vice President, Communications
Phone: 604.488.3612 Mobile: 778.668.0185
Email: emccallum@anthemproperties.com